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2013-06-03 — mortgagenewsdaily.com
``I am continuing to receive reader comments on the flaws in the government-designated compensation program causing lenders to turn their focus away from small-loan borrowers. This note is from a senior executive whose company was recently examined by the CFPB. "In response to your commentary noting, 'the commoditization of the loan officers and/or brokers' income has eliminated any incentive to invest time on such borrowers. Why not go after two or three easy deals and walk away from the one difficult?' The CFPB will tell you that we have to treat all applicants the same, regardless of loan amount, and that we have to offer mortgages to every income class. Their enforcement attorney said, "If you're going to be in mortgages, you're going to offer them to everyone". In fact, they told us that we must spend the same amount of time with each applicant; from greeting them at the door to processing. Humorously, that prompted our compliance department to instruct underwriters that they must spend the same amount of time on each file. We're down to 2 files per day per underwriter already!"''
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